iPass Revamps Its Value Proposition with New Service Delivery Platform

| Jan 20, 2010 | Enterprise Mobility - U.S. | Competitive Intelligence Report

| Analyst: Kitty Weldon

Current Perspective: Slightly Positive
Vendor Importance: High
Market Impact: Moderate

Event Summary

January 19, 2010 - iPass launches the Open Mobile Platform, a foundation for an expanded portfolio of enterprise mobility services that enables carrier independence, contains expensive connectivity costs, and reduces the administrative burden of managing a mobile workforce. The iPass vision is to be the champion for the enterprise in the mobility space, and meet customers’ unique requirements. Components include Mobile Connect, Mobile Insight, Mobile Control and the Mobile Network (with over 140,000 access points).

Analytical Summary

• Current Perspective: Slightly positive on iPass’ new cloud-based Open Mobile Platform, as it represents the cornerstone of a significant repositioning effort, which will impact the service provider’s overall value proposition. By taking advantage of its infrastructure assets, partners, customer base and carrier-agnostic stance, iPass plans to transform itself from a remote access services provider/aggregator to a provider of easy-to-use, cost-effective cloud-based connectivity that supports all mobile devices and spans all mobile networks.

• Vendor Importance: High to iPass, who has known for several years that competing against carriers as an access aggregator is no longer a viable strategy and who has been working to transform itself since it hired new CEO Evan Kaplan at the end of 2008. While iPass has 4,000+ enterprise customers, and the base is still growing, the revenue contribution of these accounts has been shrinking as access commoditizes. iPass is seizing an opportunity to tap into the growth of 3G, and to transform itself by offering a cloud computing model that simplifies the customer experience, provides cost containment, and offers visibility and control over remote end-users and assets.

• Market Impact: Moderate on enterprise mobility and global remote access services markets as iPass will be offering something that is unique in the market. While carriers offer cloud computing for business applications, they are not carrier-agnostic solutions, and while ITSPs such as IBM and HP look to utility models for managing mobile devices and applications, they lack network assets and expertise. Even Fiberlink, with its mobility as a service platform, is solving a somewhat different problem with its focus on securing remotely accessed data at the perimeter via best of breed software integration. The challenge will be for enterprises to think of iPass as more than an access aggregator and entrust their global mobile connectivity to the new platform.

CLIENTS ONLY

Current Perspective

Competitive Positives and Concerns

Recommended Vendor Actions

| Client access - Full report in Enterprise Mobility - U.S. | More information

Recommended Competitor Actions

• Competitive RAS providers should state that customers are not locked into their facilities-based networks for WiFi, 3G, hotel Ethernet etc., but that they have significantly extended their own network reach through a series of partnerships and even reseller relationships in many countries. In addition they can guarantee preferential pricing in their home countries and guarantee connectivity (if not the lowest price) through their roaming partners.

• Fiberlink should note its own re-positioning of its platform as a “mobility as a service” offering, leveraging a cloud computing model. Although it is more focused on managed security services than iPass, it has also gone far in the provision of intelligent managed connectivity services that include prioritization algorithms, policy management, BYOA, support and features a granular usage and security reporting portal. Like iPass it is focused much less on access and much more on productivity enhancements/cost containment for remote users. It should also note its relationships with Qwest and Vodafone, who both use its platform as the centerpiece of their own RAS offerings.

• ITSPs and content providers should take note of iPass’ new platform and positioning. Partnerships (including white label services) may make sense as the ITSPs do not necessarily deal much with connectivity and are often involved in higher level application services. The premise of content providers leveraging the iPass platform to reach enterprises with value-added services is also intriguing.

Recommended End User / Customer Actions

• Global MNCs that are tired of having to strike separate relationships with multiple carriers have always found RAS services an attractive proposition. They may also find that iPass can now provide them more control and ease-of use than it had before and that it can support any mobile connection and eventually any mobile business device. The may also find that the intelligence of the new platform can provide them significant cost savings as it will automatically lead them to the most cost-effective connection type for a given session without user intervention.

• Existing iPass customers should make sure to find out the details of the new services and what the upgrade policy and pricing will be. They are likely to find that the new service elements more than pay for themselves due to the network agnostic connectivity capabilities and usage controls.

CLIENTS ONLY

Current Perspective

Competitive Positives and Concerns

Recommended Vendor Actions

| Client access - Full report in Enterprise Mobility - U.S. | More information

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